Budget 2025: Finance Minister Nirmala Sitharaman will present the Union Budget 2025 on 1 February 2025 at 11 am. Will gold become cheaper this time too after the budget? The jewelery industry is demanding from the government to reduce GST on gold. The gems and jewelery industry is demanding a reduction in the Goods and Services Tax (GST) rates in the upcoming Budget 2025. The industry is demanding to reduce the Revenue Equivalence Ratio to 1 percent. The industry argues that the current 3 percent GST rate is becoming a huge cost burden, which impacts competition. This also has a negative impact on employment opportunities.
Impact of high gold prices on GST
GJC has demanded to reduce the GST rate from 3 percent to 1 percent in the upcoming budget. This will provide relief to the industry. Rajesh Rokade, chairman of All India Gem and Jewelery Domestic Council (GJC) said that we are demanding reduction in taxes to support the business. He said that due to continuously rising gold prices, the current GST rate is becoming a burden for both the industry and customers. The government needs to reduce GST from 3 percent to 1 percent. Rokade said that with the reduction in GST, the jewelery industry should get easy loans.
Rural sector will benefit from reduced taxes
Lowering the GST rate will not only help customers, especially in rural areas. Access to jewelery will become easier for common people.
Concessional GST rate should be given on lab-grown diamonds
The industry has demanded implementation of concessional GST rate for lab-grown diamonds. So that their durable and economical features can be recognized. Currently, the same GST rate is applicable on both natural and lab-grown diamonds.
Demand for a dedicated ministry for the jewelery sector
GJC has also appealed to the government to set up a dedicated ministry for the jewelery sector. Apart from this, there has also been a demand for appointment of state-level nodal office and Union Minister.
Demand for changes in EMI and gold monetization scheme
GJC Vice President Avinash Gupta said that we are demanding the government to provide EMI facility on jewellery. The industry has been demanding this for a long time. Apart from this, the Gold Monetization Scheme also needs to be restructured so that domestic gold can be brought into the economy and dependence on imports can be reduced.
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